conservation of Euros

On May 14, 7:16 am, dagmargoodb...@yahoo.com wrote:
On May 13, 5:02 pm,Bill Sloman<bill.slo...@ieee.org> wrote:

On May 13, 8:20 pm, dagmargoodb...@yahoo.com wrote:
The argument for progressive taxation is usually put in terms of those
with the broadest shoulders carrying more of the load.

Right.  That's how the Little Red Hen got a hold of all the other
animals' bread, greedy thing that she was.  She had broad shoulders.
I think you are mixing your metaphors. If you want to refer to
Orwell's "Animal Farm" you had better read it first.

This falls a
long way short of Marx -

Marx was kind of an idiot.
The same kind of idiot as Darwin, who laid out the obvious facts that
nobody had noticed before.

"The average price of wage labor is the minimum wage, i.e.,
 that quantum of the means of subsistence which is absolutely
 requisite to keep the laborer in bare existence as a laborer."
   --The Communist Manifesto

  See what I mean?
That pretty much describes the state of industrial workers in
Victorian England before the trade union movement got under way. Marx
was describing the way the world worked at the time when he wrote
that, based - in part - on the data that he got from Friedrich Engels,
who not only supported Marx financially, but also provided a lot of
the social statistics on which Marx based his work.

http://en.wikipedia.org/wiki/Friedrich_Engels

Marx's economic writings were much more evidence-based than those of
his contemporaries. If Marx is a kind of idiot, it is the kind of
idiot that we should see more often.

Your comment demonstrates that you don't understand why industrial
workes are no longer paid a bare subsistence wage, and the
contribution that Marx made to the process that changed their
condition.

  Of course Marx himself was a n'er-do-well who never earned his keep,
a pseudo-academic parasite sponging off patron Engels.  Engels in turn
coasted off the family business.  Marx made his living guilt-tripping
Engels with econobabble, a fine tradition carried on by Marxists
today.
There was nothing pseudo-academic about Marx. He revolutionised
academic economics, in part by exploiting statistical data about the
actual economies of the time, quite a bit of which was collected by
Engels.

  "To each according to need" really means "From you to me."  "Dear
Fred, I need that grocery money, and I deserve it, luv Karl, xoxoxoxo
P.S. Stop exploiting me! KM"
Perhaps. Marx didn't have an appealing personality. But he was doing
important - ground-breaking - work, and Engels saw its value and
provided the financial and intellectual support that allowed Marx to
get on with it.

That you don't see its value reflects your - negligible - intellectual
status as a right-wing nitwit.

  Marx's moronic precepts ruined scores of countries, and killed tens
of millions, maybe hundreds.
The Bolshevik version of Marxism, with its emphasis on the "leading
role of the party" has damaged a lot of countries, and killed a lot of
people. The problem isn't with Marxism, but the concentration of power
into the hands of an unrepresentative and irresponsible elite - the
Communist party in Stalin's Russian, Mao's China, and Pol Pot's
Cambodia killed a lot of people, but the Nazi Party in Hitler's
Germany, the Fascist parties in Mussolini's Italy and Franco's Spain
weren't far behind, despite their violently anti-Marxist ideologies.

 "Hard-won, self-acquired, self-earned property! Do you mean
  the property of petty artisan and of the small peasant, a form
  of property that preceded the bourgeois form? There is no
  need to abolish that; the development of industry has to a
  great extent already destroyed it, and is still destroying
  it daily."  --The Communist Manifesto

But, dim-witted Marx had it exactly bass-ackwards--industry was the
very salvation for the proletariat, pulling them up out of poverty.
Only after the trade union movement forced industrial employers to pay
their workers at above subsistence levels. Sometimes they achieved
this by direct strike action, but more often far-sighted employers
anticipated trade union activism by improving conditions of work to
make the jobs of trade union recruiters more difficult, in much the
same way as Bismark invented modern universal health care as a way of
stealing votes from his socialist political rivals.

"Industry?" you ask?  Productivity-amplifying machines, powered by
fossil fuels.  Let's get rid of those, shall we?
Why? You do like introducing silly straw-man arguments. It would be a
much better idea to improve industry so that the machines didn't have
to be powered by burning fossil fuels, but understanding how one might
do this requires a better grasp of technological possiblities than you
have ever demonstrated.

from each according to the abilities, to each
according to their needs - and is compatible with a society where some
people can afford fancier cars, bigger houses and finer wines than
their neighbours, though the rich no longer have access to the
services of a truly deprived under-class who will do almost anything
to save their kids from starvation.

Socialist countries are the ones who crush their peoples in poverty,
and whose people flee to the USA, not the reverse.
And your statistical evidence for this unlikely story is?

Forty years ago, the USA did offer a higher standard of living than
any other country in the world, but that hasn't been true for quite
some time now. It still offers respectable material prosperity, but
education and health care are both now so expensive that immigrants
from the more prosperous parts of Europe have to be confident of
getting very well paying jobs before they could contemplate making a
permanent move.

This guy makes your case for you:http://www.youtube.com/watch?v=P0wwK7fggOs&NR=1

The link doesn't work for me, and if it had worked I imagine that its
content would be just as half-baked as your argument.

Pity.  A conspiracy idiot.  He makes your case well.
And what is the "conspiracy" to which you think I might be referring?
You right-wing nut cases do seem to share a number of delusions, but
that can be explained without resorting to any conspiracy - sinmple-
minded nitwits like simple solutions, and lack the historical insight
to realise that these solutions haven't worked in the past and are
even less likely to work now.

--
Bill Sloman, Nijmegen
 
On May 14, 12:39 am, John Larkin
<jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 15:12:11 -0700 (PDT),Bill Sloman



bill.slo...@ieee.org> wrote:
On May 13, 6:32 pm, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 07:32:26 -0700 (PDT), dagmargoodb...@yahoo.com
wrote:

On May 13, 4:39 am,Bill Sloman<bill.slo...@ieee.org> wrote:
On May 13, 1:51 am, dagmargoodb...@yahoo.com wrote:
On May 12, 5:48 pm, "krw wrote:
On Wed, 12 May 2010 09:34:59 -0700 (PDT), dagmargoodb...@yahoo.com wrote:

Maybe.  A 10% VAT would raise $1.5T a year, enough to pay for Obama's
permanent spending bender on...whatever it was we got for all that
dough he spent--I can't remember.

*Maybe*.  The deficit for just April was $83B.  Note that April is also the
month when the government intake is *highest*, do to the April 15 tax filing
date.  In 43 of the last 56 years April has been a net surplus month.  

snip

A 10% VAT gives Obama $125B more/month to fritter away on nothing..
(Enough for break-even, not enough to pay off any debt.)

Of course that assumes  people continue to buy stuff at the same rate,
which they won't.  They won't work at the same rate either.  Better
make it 18%, like Europe.  And, naturally, that won't be enough
either.  He'll spend more.

That said, Obama won't push a VAT--it doesn't redistribute wealth..
Deficit spending does.

Actually, VAT does redistribute wealth - away from the poor towards
the rich. The poor spend most of their income on buying stuff, which
attracts VAT.

True.

The rich divert a larger part of their income into investment, which
doesn't attract VAT.

Naturally.  As a nation, we spend 10% of our time and creative energy
figuring out how to pay our taxes, and 5% (maybe more) planning the
course that minimizes them.

Technically speaking, this makes VAT is a
regressive tax.

In the US we have a proposal called "The Fair Tax," a simple 23%
national sales tax.  It would replace all of our federal tax system
(personal and corporate income tax, Medicare, Social Security, etc),
and eliminate all the credits, deductions, receipts, bookkeeping and
time spent dodging & gaming the various income taxes.  The latter
costs us hundreds of billions a year, not to mention human energy
wasted unproductively.

A simple "prebate" makes the Fair Tax progressive.

Just exempt basics, like sensible food, reasonable rent, generic
medicines, public transport, education, stuff like that. Use tax
policy to steer behavior.

They tried that in the UK. It rapidly got silly. Food was VAT-exempt,
but eating in a restaurant was not a necessity, so you had to pay VAT
on the bill - unless you bought a take-away meal.

That's the way sales tax works in California. If I buy uncooked
chicken at Safeway, there's no sales tax. If I buy cooked, hot,
ready-to-eat chicken, it's taxed. It's simple, because it's a visible,
automated-cash-register, point-of-sale tax. Restaurant food is taxed
whether you eat it there or not. I can't imagine how you could work a
thing like this all the way back up the VAT chain.

It would be easy to structure a national sales tax to exempt the
things poorer people actually need. There would be some cheating
around the edges, but there always will be some cheating. But things
like VAT carousel fraud couldn't happen.

(One shop near here sells  " *WARM* " corned-beef sandwiches because
hot ones have a higher tax rate.)

I like the sales tax, as opposed to income tax, because it puts
business on a better basis against imports, so saves jobs. And because
it would be enormously simpler and cheaper to comply with. No
accountants, no tax returns, no exemptions, no deductions, no
quarterly estimates, no loopholes... almost.
Dream on. Why do you think that VAT was invented?

http://en.wikipedia.org/wiki/Value_added_tax

Tax consumption. Don't tax savings or investment or job creation. If a
person is rich but doesn't spend any money, nobody can reasonably be
jealous of his wealth.
It does seem inequitable to organise society so that the rich pay out
a lower proportion of their - higher - incomes in tax than do the
poor. It also means that the administration is extracting more of its
income from people who feel the loss more keenly.

The rich don't like paying taxes any more than do the poor, but it's
less painful to have to economise on luxuries than on necessities.

--
Bill Sloman, Nijmegen
 
On May 14, 3:15 am, "k...@att.bizzzzzzzzzzzz"
<k...@att.bizzzzzzzzzzzz> wrote:
On Thu, 13 May 2010 15:39:28 -0700, John Larkin



jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 15:12:11 -0700 (PDT),Bill Sloman
bill.slo...@ieee.org> wrote:

On May 13, 6:32 pm, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 07:32:26 -0700 (PDT), dagmargoodb...@yahoo.com
wrote:

On May 13, 4:39 am,Bill Sloman<bill.slo...@ieee.org> wrote:
On May 13, 1:51 am, dagmargoodb...@yahoo.com wrote:
On May 12, 5:48 pm, "krw wrote:
On Wed, 12 May 2010 09:34:59 -0700 (PDT), dagmargoodb...@yahoo..com wrote:

Maybe.  A 10% VAT would raise $1.5T a year, enough to pay for Obama's
permanent spending bender on...whatever it was we got for all that
dough he spent--I can't remember.

*Maybe*.  The deficit for just April was $83B.  Note that April is also the
month when the government intake is *highest*, do to the April 15 tax filing
date.  In 43 of the last 56 years April has been a net surplus month.  

snip

A 10% VAT gives Obama $125B more/month to fritter away on nothing.
(Enough for break-even, not enough to pay off any debt.)

Of course that assumes  people continue to buy stuff at the same rate,
which they won't.  They won't work at the same rate either.  Better
make it 18%, like Europe.  And, naturally, that won't be enough
either.  He'll spend more.

That said, Obama won't push a VAT--it doesn't redistribute wealth.
Deficit spending does.

Actually, VAT does redistribute wealth - away from the poor towards
the rich. The poor spend most of their income on buying stuff, which
attracts VAT.

True.

The rich divert a larger part of their income into investment, which
doesn't attract VAT.

Naturally.  As a nation, we spend 10% of our time and creative energy
figuring out how to pay our taxes, and 5% (maybe more) planning the
course that minimizes them.

Technically speaking, this makes VAT is a
regressive tax.

In the US we have a proposal called "The Fair Tax," a simple 23%
national sales tax.  It would replace all of our federal tax system
(personal and corporate income tax, Medicare, Social Security, etc),
and eliminate all the credits, deductions, receipts, bookkeeping and
time spent dodging & gaming the various income taxes.  The latter
costs us hundreds of billions a year, not to mention human energy
wasted unproductively.

A simple "prebate" makes the Fair Tax progressive.

Just exempt basics, like sensible food, reasonable rent, generic
medicines, public transport, education, stuff like that. Use tax
policy to steer behavior.

They tried that in the UK. It rapidly got silly. Food was VAT-exempt,
but eating in a restaurant was not a necessity, so you had to pay VAT
on the bill - unless you bought a take-away meal.

That's the way sales tax works in California. If I buy uncooked
chicken at Safeway, there's no sales tax. If I buy cooked, hot,
ready-to-eat chicken, it's taxed. It's simple, because it's a visible,
automated-cash-register, point-of-sale tax. Restaurant food is taxed
whether you eat it there or not.

In Vermong there is a so called "bagel tax".  If you buy one bagel, it's taxed
as "prepared food".  If you buy six they're not taxed because they've now
become "groceries".  NY has similar silliness, orange juice is not taxed,
Hawaiian Punch and Tang are.

I can't imagine how you could work a
thing like this all the way back up the VAT chain.

VATs tend to be sales taxes, in reality.



It would be easy to structure a national sales tax to exempt the
things poorer people actually need. There would be some cheating
around the edges, but there always will be some cheating. But things
like VAT carousel fraud couldn't happen.

(One shop near here sells  " *WARM* " corned-beef sandwiches because
hot ones have a higher tax rate.)

I like the sales tax, as opposed to income tax, because it puts
business on a better basis against imports, so saves jobs. And because
it would be enormously simpler and cheaper to comply with. No
accountants, no tax returns, no exemptions, no deductions, no
quarterly estimates, no loopholes... almost.

Tax consumption. Don't tax savings or investment or job creation. If a
person is rich but doesn't spend any money, nobody can reasonably be
jealous of his wealth.

Leftists and those on the receiving end aren't reasonable.
They are perfectly reasonable. but they don't have the same
preconceptions as right-wing nitwits. Notably, they don't think that
being rich is a condition that exempts you from paying your fair share
of the costs of running your society. The rich make more use of the
advantages of being members of a rich society - their children are
over-represented in tertiary education, their cars do more miles per
year on the roads, and the contents of their houses are more
interesting to burglars, so the police have to work harder to protect
them - and leftist have this idea that they should pay out a somewhat
higher proportion of their income in taxes to compensate society for
these extra costs.

--
Bill Sloman, Nijmegen
 
On May 14, 4:08 am, John Larkin
<jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 20:15:42 -0500, "k...@att.bizzzzzzzzzzzz"



k...@att.bizzzzzzzzzzzz> wrote:
On Thu, 13 May 2010 15:39:28 -0700, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:

On Thu, 13 May 2010 15:12:11 -0700 (PDT),Bill Sloman
bill.slo...@ieee.org> wrote:

On May 13, 6:32 pm, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 07:32:26 -0700 (PDT), dagmargoodb...@yahoo.com
wrote:

On May 13, 4:39 am,Bill Sloman<bill.slo...@ieee.org> wrote:
On May 13, 1:51 am, dagmargoodb...@yahoo.com wrote:
On May 12, 5:48 pm, "krw wrote:
On Wed, 12 May 2010 09:34:59 -0700 (PDT), dagmargoodb...@yahoo.com wrote:

Maybe.  A 10% VAT would raise $1.5T a year, enough to pay for Obama's
permanent spending bender on...whatever it was we got for all that
dough he spent--I can't remember.

*Maybe*.  The deficit for just April was $83B.  Note that April is also the
month when the government intake is *highest*, do to the April 15 tax filing
date.  In 43 of the last 56 years April has been a net surplus month.  

snip

A 10% VAT gives Obama $125B more/month to fritter away on nothing.
(Enough for break-even, not enough to pay off any debt.)

Of course that assumes  people continue to buy stuff at the same rate,
which they won't.  They won't work at the same rate either.  Better
make it 18%, like Europe.  And, naturally, that won't be enough
either.  He'll spend more.

That said, Obama won't push a VAT--it doesn't redistribute wealth.
Deficit spending does.

Actually, VAT does redistribute wealth - away from the poor towards
the rich. The poor spend most of their income on buying stuff, which
attracts VAT.

True.

The rich divert a larger part of their income into investment, which
doesn't attract VAT.

Naturally.  As a nation, we spend 10% of our time and creative energy
figuring out how to pay our taxes, and 5% (maybe more) planning the
course that minimizes them.

Technically speaking, this makes VAT is a
regressive tax.

In the US we have a proposal called "The Fair Tax," a simple 23%
national sales tax.  It would replace all of our federal tax system
(personal and corporate income tax, Medicare, Social Security, etc),
and eliminate all the credits, deductions, receipts, bookkeeping and
time spent dodging & gaming the various income taxes.  The latter
costs us hundreds of billions a year, not to mention human energy
wasted unproductively.

A simple "prebate" makes the Fair Tax progressive.

Just exempt basics, like sensible food, reasonable rent, generic
medicines, public transport, education, stuff like that. Use tax
policy to steer behavior.

They tried that in the UK. It rapidly got silly. Food was VAT-exempt,
but eating in a restaurant was not a necessity, so you had to pay VAT
on the bill - unless you bought a take-away meal.

That's the way sales tax works in California. If I buy uncooked
chicken at Safeway, there's no sales tax. If I buy cooked, hot,
ready-to-eat chicken, it's taxed. It's simple, because it's a visible,
automated-cash-register, point-of-sale tax. Restaurant food is taxed
whether you eat it there or not.

In Vermong there is a so called "bagel tax".  If you buy one bagel, it's taxed
as "prepared food".  If you buy six they're not taxed because they've now
become "groceries".  NY has similar silliness, orange juice is not taxed,
Hawaiian Punch and Tang are.

It's sometimes silly and arbitrary, but it's still pretty simple to
administer... the cash register reads the UPC and adds tax or
doesn't... and it generally exempts the basics that lower-income
people need.

A 20% tax on junk food, and zero on broccoli, would encourage people
to eat their broccoli.



I can't imagine how you could work a
thing like this all the way back up the VAT chain.

VATs tend to be sales taxes, in reality.

VAT is applied all up and down the production chain. So the only stage
that can be selectively taxes is the last one, at point of sale. I
prefer a true 100% visible point of sale sales tax. VAT is designed to
hide the actual taxation level, at considerable cost of complexity.
http://en.wikipedia.org/wiki/Value_added_tax

Do try and find out something about VAT before telling us what is -
and is not - possible.

And VAT is perfectly visible at the pointo of sale, which is the first
point where the buyers can't recover the VAT on the stuff they have
bought, because they aren't going to sell it on.

It would be easy to structure a national sales tax to exempt the
things poorer people actually need. There would be some cheating
around the edges, but there always will be some cheating. But things
like VAT carousel fraud couldn't happen.

(One shop near here sells  " *WARM* " corned-beef sandwiches because
hot ones have a higher tax rate.)

I like the sales tax, as opposed to income tax, because it puts
business on a better basis against imports, so saves jobs. And because
it would be enormously simpler and cheaper to comply with. No
accountants, no tax returns, no exemptions, no deductions, no
quarterly estimates, no loopholes... almost.

Tax consumption. Don't tax savings or investment or job creation. If a
person is rich but doesn't spend any money, nobody can reasonably be
jealous of his wealth.

Leftists and those on the receiving end aren't reasonable.

Oh. Right.
By "reasonable" krw would understand "sharing right-wing nitwit
preconceptions" which don't happen to be all that rational, not that
you would seem to be equipped to understand this.

--
Bill Sloman, Nijmegen
 
On May 14, 6:03 am, dagmargoodb...@yahoo.com wrote:
On May 13, 10:21 pm, "k...@att.bizzzzzzzzzzzz"

k...@att.bizzzzzzzzzzzz> wrote:
On Thu, 13 May 2010 19:08:20 -0700, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
VATs tend to be sales taxes, in reality.

VAT is applied all up and down the production chain. So the only stage
that can be selectively taxes is the last one, at point of sale. I
prefer a true 100% visible point of sale sales tax. VAT is designed to
hide the actual taxation level, at considerable cost of complexity.

That's the theory but in practice, AIUI, VATs are only collected at the end of
the pipe.

No.  They're charged and credited throughout the chain.  Your thing
gets taxed, then rebated and the next guy pays, then gets his rebate,
etc.

Maximum work for everyone.  Maximum intrusion.  Horrible.
But easily automated, unless you want to cheat. No place where I
worked complained about the complexity or got worried about
intrusions. European small business software packages claim to include
it as a matter of course.

People who are sloppy about their paper-work can get in a mess with
VAT, as with every other item of accounting, but at least it isn't
hard to understand.

--
Bill Sloman, Nijmegen
 
John Larkin wrote:
On Thu, 13 May 2010 15:12:11 -0700 (PDT), Bill Sloman
bill.sloman@ieee.org> wrote:

On May 13, 6:32 pm, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 07:32:26 -0700 (PDT), dagmargoodb...@yahoo.com
wrote:



On May 13, 4:39 am,Bill Sloman<bill.slo...@ieee.org> wrote:
On May 13, 1:51 am, dagmargoodb...@yahoo.com wrote:
On May 12, 5:48 pm, "krw wrote:
On Wed, 12 May 2010 09:34:59 -0700 (PDT), dagmargoodb...@yahoo.com wrote:
Maybe. A 10% VAT would raise $1.5T a year, enough to pay for Obama's
permanent spending bender on...whatever it was we got for all that
dough he spent--I can't remember.
*Maybe*. The deficit for just April was $83B. Note that April is also the
month when the government intake is *highest*, do to the April 15 tax filing
date. In 43 of the last 56 years April has been a net surplus month.
snip
A 10% VAT gives Obama $125B more/month to fritter away on nothing.
(Enough for break-even, not enough to pay off any debt.)
Of course that assumes people continue to buy stuff at the same rate,
which they won't. They won't work at the same rate either. Better
make it 18%, like Europe. And, naturally, that won't be enough
either. He'll spend more.
That said, Obama won't push a VAT--it doesn't redistribute wealth.
Deficit spending does.
Actually, VAT does redistribute wealth - away from the poor towards
the rich. The poor spend most of their income on buying stuff, which
attracts VAT.
True.
The rich divert a larger part of their income into investment, which
doesn't attract VAT.
Naturally. As a nation, we spend 10% of our time and creative energy
figuring out how to pay our taxes, and 5% (maybe more) planning the
course that minimizes them.
Technically speaking, this makes VAT is a
regressive tax.
In the US we have a proposal called "The Fair Tax," a simple 23%
national sales tax. It would replace all of our federal tax system
(personal and corporate income tax, Medicare, Social Security, etc),
and eliminate all the credits, deductions, receipts, bookkeeping and
time spent dodging & gaming the various income taxes. The latter
costs us hundreds of billions a year, not to mention human energy
wasted unproductively.
A simple "prebate" makes the Fair Tax progressive.
Just exempt basics, like sensible food, reasonable rent, generic
medicines, public transport, education, stuff like that. Use tax
policy to steer behavior.
They tried that in the UK. It rapidly got silly. Food was VAT-exempt,
but eating in a restaurant was not a necessity, so you had to pay VAT
on the bill - unless you bought a take-away meal.

That's the way sales tax works in California. If I buy uncooked
chicken at Safeway, there's no sales tax. If I buy cooked, hot,
ready-to-eat chicken, it's taxed. It's simple, because it's a visible,
automated-cash-register, point-of-sale tax. Restaurant food is taxed
whether you eat it there or not. I can't imagine how you could work a
thing like this all the way back up the VAT chain.
Actually, Countries in Europe have that in the VAT system. IIRC Germany
has several VAT levels, the one on uncooked food and groceries is around
half of the regular rate. Which is sky-high to begin with and, of
course, they also have an income tax.


It would be easy to structure a national sales tax to exempt the
things poorer people actually need. There would be some cheating
around the edges, but there always will be some cheating. But things
like VAT carousel fraud couldn't happen.

(One shop near here sells " *WARM* " corned-beef sandwiches because
hot ones have a higher tax rate.)

I like the sales tax, as opposed to income tax, because it puts
business on a better basis against imports, so saves jobs. And because
it would be enormously simpler and cheaper to comply with. No
accountants, no tax returns, no exemptions, no deductions, no
quarterly estimates, no loopholes... almost.

Tax consumption. Don't tax savings or investment or job creation. If a
person is rich but doesn't spend any money, nobody can reasonably be
jealous of his wealth.
A serious problem with that: It punishes frugal people who have saved
for their retirement and rewards those who squandered everything. The
money they saved _has_ already been taxed. An additional flat sales tax
would increase their cost of living instantly by 10% or whatever. Not
fair at all.

--
Regards, Joerg

http://www.analogconsultants.com/

"gmail" domain blocked because of excessive spam.
Use another domain or send PM.
 
krw@att.bizzzzzzzzzzzz wrote:
On Thu, 13 May 2010 19:08:20 -0700, John Larkin
jjlarkin@highNOTlandTHIStechnologyPART.com> wrote:

On Thu, 13 May 2010 20:15:42 -0500, "krw@att.bizzzzzzzzzzzz"
krw@att.bizzzzzzzzzzzz> wrote:

On Thu, 13 May 2010 15:39:28 -0700, John Larkin
jjlarkin@highNOTlandTHIStechnologyPART.com> wrote:

On Thu, 13 May 2010 15:12:11 -0700 (PDT), Bill Sloman
bill.sloman@ieee.org> wrote:

On May 13, 6:32 pm, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 07:32:26 -0700 (PDT), dagmargoodb...@yahoo.com
wrote:



On May 13, 4:39 am,Bill Sloman<bill.slo...@ieee.org> wrote:
On May 13, 1:51 am, dagmargoodb...@yahoo.com wrote:
On May 12, 5:48 pm, "krw wrote:
On Wed, 12 May 2010 09:34:59 -0700 (PDT), dagmargoodb...@yahoo.com wrote:
Maybe. A 10% VAT would raise $1.5T a year, enough to pay for Obama's
permanent spending bender on...whatever it was we got for all that
dough he spent--I can't remember.
*Maybe*. The deficit for just April was $83B. Note that April is also the
month when the government intake is *highest*, do to the April 15 tax filing
date. In 43 of the last 56 years April has been a net surplus month.
snip
A 10% VAT gives Obama $125B more/month to fritter away on nothing.
(Enough for break-even, not enough to pay off any debt.)
Of course that assumes people continue to buy stuff at the same rate,
which they won't. They won't work at the same rate either. Better
make it 18%, like Europe. And, naturally, that won't be enough
either. He'll spend more.
That said, Obama won't push a VAT--it doesn't redistribute wealth.
Deficit spending does.
Actually, VAT does redistribute wealth - away from the poor towards
the rich. The poor spend most of their income on buying stuff, which
attracts VAT.
True.
The rich divert a larger part of their income into investment, which
doesn't attract VAT.
Naturally. As a nation, we spend 10% of our time and creative energy
figuring out how to pay our taxes, and 5% (maybe more) planning the
course that minimizes them.
Technically speaking, this makes VAT is a
regressive tax.
In the US we have a proposal called "The Fair Tax," a simple 23%
national sales tax. It would replace all of our federal tax system
(personal and corporate income tax, Medicare, Social Security, etc),
and eliminate all the credits, deductions, receipts, bookkeeping and
time spent dodging & gaming the various income taxes. The latter
costs us hundreds of billions a year, not to mention human energy
wasted unproductively.
A simple "prebate" makes the Fair Tax progressive.
Just exempt basics, like sensible food, reasonable rent, generic
medicines, public transport, education, stuff like that. Use tax
policy to steer behavior.
They tried that in the UK. It rapidly got silly. Food was VAT-exempt,
but eating in a restaurant was not a necessity, so you had to pay VAT
on the bill - unless you bought a take-away meal.
That's the way sales tax works in California. If I buy uncooked
chicken at Safeway, there's no sales tax. If I buy cooked, hot,
ready-to-eat chicken, it's taxed. It's simple, because it's a visible,
automated-cash-register, point-of-sale tax. Restaurant food is taxed
whether you eat it there or not.
In Vermong there is a so called "bagel tax". If you buy one bagel, it's taxed
as "prepared food". If you buy six they're not taxed because they've now
become "groceries". NY has similar silliness, orange juice is not taxed,
Hawaiian Punch and Tang are.
It's sometimes silly and arbitrary, but it's still pretty simple to
administer... the cash register reads the UPC and adds tax or
doesn't... and it generally exempts the basics that lower-income
people need.

A 20% tax on junk food, and zero on broccoli, would encourage people
to eat their broccoli.


I can't imagine how you could work a
thing like this all the way back up the VAT chain.
VATs tend to be sales taxes, in reality.
VAT is applied all up and down the production chain. So the only stage
that can be selectively taxes is the last one, at point of sale. I
prefer a true 100% visible point of sale sales tax. VAT is designed to
hide the actual taxation level, at considerable cost of complexity.

That's the theory but in practice, AIUI, VATs are only collected at the end of
the pipe.
And they are _not_ simple at all. While in Europe I had to file business
taxes and there was an intricate VAT refunding scheme you had to follow
for business stuff. This regularly led to questions from their tax
agencies because I also had foreign clients which did not have to pay
VAT on my services.

--
Regards, Joerg

http://www.analogconsultants.com/

"gmail" domain blocked because of excessive spam.
Use another domain or send PM.
 
krw@att.bizzzzzzzzzzzz wrote:
On Thu, 13 May 2010 21:03:14 -0700 (PDT), dagmargoodboat@yahoo.com wrote:

On May 13, 10:21 pm, "k...@att.bizzzzzzzzzzzz"
k...@att.bizzzzzzzzzzzz> wrote:
On Thu, 13 May 2010 19:08:20 -0700, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
VATs tend to be sales taxes, in reality.
VAT is applied all up and down the production chain. So the only stage
that can be selectively taxes is the last one, at point of sale. I
prefer a true 100% visible point of sale sales tax. VAT is designed to
hide the actual taxation level, at considerable cost of complexity.
That's the theory but in practice, AIUI, VATs are only collected at the end of
the pipe.
No. They're charged and credited throughout the chain. Your thing
gets taxed, then rebated and the next guy pays, then gets his rebate,
etc.

So it's only collected at the end.
No. It's typically collected every time something is sold (unless
exempt, like food). There is a bureaucratic process to get it refunded
for stuff that was not used at the end of the chain.


Maximum work for everyone. Maximum intrusion. Horrible.

A lot of work, sure, but money only changes hands at the end of the pipe.
...and IIRC, the Canuckistani VAT is paid by the buyer; a sales tax.

It's probably like in Europe but not sure: If a non-exempt company buys
a scope or something else they have to fork out the VAT. Then file for a
refund, along with all other VAT declarations.

--
Regards, Joerg

http://www.analogconsultants.com/

"gmail" domain blocked because of excessive spam.
Use another domain or send PM.
 
On Fri, 14 May 2010 01:45:16 -0700 (PDT), Bill Sloman
<bill.sloman@ieee.org> wrote:

On May 13, 10:05 pm, Greegor <greego...@gmail.com> wrote:
BS > Do pay attention. The trouble that Greece is
BS > now in will be fixed by Greece. The EU - as
BS > a whole - will under-write Greek borrowing
BS > until that happens.

Oh GOODY!   More DEBT!   THAT'LL fix em!   LOL!

The alternative was to let them go bankrupt, taking down a bunch of
Eurpean banks that had lent them money. This is pretty much what
happend in 1929, and the relevant politicians know enough history to
be aware of this, and didn't fancy going down that route again.
There's a good argument that the government interventions in the '30s
created a decade-long depression that otherwise would have been a
year-or-so stock market bust. The "success" of the Roosevelt acts has
entered our mythology.

It's not as though economists understand any of this stuff.

http://www.sciencedaily.com/releases/2010/05/100511092406.htm

Right-wing nitwits are less familiar with history, and correspondingly
more enthusiastic about repeating their ancestor's mistakes.
History records that we had stock market bubbles and busts for
hundreds of years before 1929, and that the first great government
intervention in such a bust was followed by the first Great
Depression.

Make no mistake. The Greeks are in the process of reforming their
economy.
Beginning with a general strike.

Already public servants are getting 10% lower salaries, and
their retirement age has been raised from 61 to 65. There's a lot
more of that kind of belt-tightening in the pipe-line.
When "public servants" getting a 10% pay cut has serious effects on an
economy, you know that you have way too many "public servants."

John
 
On Thu, 13 May 2010 22:16:49 -0700 (PDT), dagmargoodboat@yahoo.com
wrote:

On May 13, 5:02 pm, Bill Sloman <bill.slo...@ieee.org> wrote:
On May 13, 8:20 pm, dagmargoodb...@yahoo.com wrote:

The argument for progressive taxation is usually put in terms of those
with the broadest shoulders carrying more of the load.

Right. That's how the Little Red Hen got a hold of all the other
animals' bread, greedy thing that she was. She had broad shoulders.

This falls a
long way short of Marx -

Marx was kind of an idiot.

"The average price of wage labor is the minimum wage, i.e.,
that quantum of the means of subsistence which is absolutely
requisite to keep the laborer in bare existence as a laborer."
--The Communist Manifesto

See what I mean?
Yeah, he wouldn't understand a female plumber making $150K.

What created our modern wealth was engineers applying science.

John
 
Bill Sloman wrote:
On May 14, 6:03 am, dagmargoodb...@yahoo.com wrote:
On May 13, 10:21 pm, "k...@att.bizzzzzzzzzzzz"

k...@att.bizzzzzzzzzzzz> wrote:
On Thu, 13 May 2010 19:08:20 -0700, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
VATs tend to be sales taxes, in reality.
VAT is applied all up and down the production chain. So the only stage
that can be selectively taxes is the last one, at point of sale. I
prefer a true 100% visible point of sale sales tax. VAT is designed to
hide the actual taxation level, at considerable cost of complexity.
That's the theory but in practice, AIUI, VATs are only collected at the end of
the pipe.
No. They're charged and credited throughout the chain. Your thing
gets taxed, then rebated and the next guy pays, then gets his rebate,
etc.

Maximum work for everyone. Maximum intrusion. Horrible.

But easily automated, unless you want to cheat. No place where I
worked complained about the complexity or got worried about
intrusions. European small business software packages claim to include
it as a matter of course.
And then you get a letter from the tax agency, asking for some
explanation why your VAT intake was so low and you claimed so much in
refunds. "Because I run a business, are VAT-exempt for that, and have
clients in places like Asia" ... "Can you come by with the books and
show us?" ... "Sure". It was a nice bicycle ride through a forest so I
didn't mind. The guy there was very friendly but became quite frustrated
because nearly all the stuff was in foreign languages, some in Korean :)


People who are sloppy about their paper-work can get in a mess with
VAT, as with every other item of accounting, but at least it isn't
hard to understand.
IIRC we had 6 or 7 VAT rates and you really had to watch your data
entry. At the "Pre-computer" point.

--
Regards, Joerg

http://www.analogconsultants.com/

"gmail" domain blocked because of excessive spam.
Use another domain or send PM.
 
Bill Sloman wrote:
On May 14, 12:39 am, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
[...]

That's the way sales tax works in California. If I buy uncooked
chicken at Safeway, there's no sales tax. If I buy cooked, hot,
ready-to-eat chicken, it's taxed. It's simple, because it's a visible,
automated-cash-register, point-of-sale tax. Restaurant food is taxed
whether you eat it there or not. I can't imagine how you could work a
thing like this all the way back up the VAT chain.

It would be easy to structure a national sales tax to exempt the
things poorer people actually need. There would be some cheating
around the edges, but there always will be some cheating. But things
like VAT carousel fraud couldn't happen.

(One shop near here sells " *WARM* " corned-beef sandwiches because
hot ones have a higher tax rate.)

I like the sales tax, as opposed to income tax, because it puts
business on a better basis against imports, so saves jobs. And because
it would be enormously simpler and cheaper to comply with. No
accountants, no tax returns, no exemptions, no deductions, no
quarterly estimates, no loopholes... almost.

Dream on. Why do you think that VAT was invented?

http://en.wikipedia.org/wiki/Value_added_tax
The usual. To squeeze ever more taxes out of people. Whether you call
them VAT, fees, surcharges, carbon credits or whatever, a tax is a tax
is a tax.

[...]

--
Regards, Joerg

http://www.analogconsultants.com/

"gmail" domain blocked because of excessive spam.
Use another domain or send PM.
 
On Fri, 14 May 2010 08:31:49 +0100, Martin Brown
<|||newspam|||@nezumi.demon.co.uk> wrote:

On 14/05/2010 06:16, dagmargoodboat@yahoo.com wrote:
On May 13, 5:02 pm, Bill Sloman<bill.slo...@ieee.org> wrote:
On May 13, 8:20 pm, dagmargoodb...@yahoo.com wrote:

The argument for progressive taxation is usually put in terms of those
with the broadest shoulders carrying more of the load.

Right. That's how the Little Red Hen got a hold of all the other
animals' bread, greedy thing that she was. She had broad shoulders.

This falls a
long way short of Marx -

Marx was kind of an idiot.

"The average price of wage labor is the minimum wage, i.e.,
that quantum of the means of subsistence which is absolutely
requisite to keep the laborer in bare existence as a laborer."
--The Communist Manifesto

See what I mean?

Of course Marx himself was a n'er-do-well who never earned his keep,
a pseudo-academic parasite sponging off patron Engels. Engels in turn
coasted off the family business. Marx made his living guilt-tripping
Engels with econobabble, a fine tradition carried on by Marxists
today.

Engels saw first hand what greedy industrialists were doing to their
workers in the Lancashire cotton industry. Boiler explosions were
commonplace up until the Vulcan insurers made a stand and insisted on
proper boiler safety inspections. And in cases of tampering with safety
relief valves they would not pay out.

It was common practice to overstoke the fire before the first shift and
add weight to the pressure relief valve - this resulted in several large
scale boiler explosions destroying big mills in the early morning and
killing many workers in the Lancashire cotton industry.

http://www.camdenmin.co.uk/technical-steam/historic-steam-boiler-explosions-p-2658.html

Articles on the history of boiler insurance show that the US had a worse
record despite having the advantage of seeing the innovations in UK
boilers. Some element of NIH played a part but mostly it was that
industrialists greed was paramount and the workers powerless. eg.

http://www.casact.org/pubs/proceed/proceed15/15407.pdf
first page and page 7 under Normal Loss Hazard

"To each according to need" really means "From you to me." "Dear
Fred, I need that grocery money, and I deserve it, luv Karl, xoxoxoxo
P.S. Stop exploiting me! KM"

It makes reasonable sense to pay your workers a living wage for the work
that they do rather than pay them less than they can sensibly live on.
Ford was about the first in the USA to actually do this.
It only makes sense if the money comes from somewhere. If all the
employers arbitrarily doubled wages, inflation would take it all away
within weeks, maybe days. If a single employer did it, he's go out of
business. Shuffling paper money around is meaningless; productivity is
real. Ford increased wages because he had a revolutionary
super-efficient way of making cheap cars, and most workers found the
pace and discipline tiring and tended to quit after a few months. He
needed the best workers to stick around, so he golden-handcuffed them;
this was *before* they were unionized. The "invisible hand" was at
work. Productivity was the key.

This is good:

http://www.amazon.com/Ford-Men-Machine-Robert-Lacey/dp/0517635046/ref=sr_1_1?ie=UTF8&s=books&qid=1273849223&sr=1-1


In the UK there were some decent industrialists mostly of quaker
families who did treat their workforce fairly - examples include some
household names like Pilkingtons, Cadbury, Bournville, Marks&Spencer.
A decent industrialist realizes that a partnership with workers is
mutually beneficial, but must still compete with company owners who
don't agree with this philosophy. A company can't arbitrarily give
away high wages without achieving corresponding competitive benefits.

John
 
On Fri, 14 May 2010 02:49:23 -0700 (PDT), Bill Sloman
<bill.sloman@ieee.org> wrote:

On May 14, 7:16 am, dagmargoodb...@yahoo.com wrote:
On May 13, 5:02 pm,Bill Sloman<bill.slo...@ieee.org> wrote:

On May 13, 8:20 pm, dagmargoodb...@yahoo.com wrote:
The argument for progressive taxation is usually put in terms of those
with the broadest shoulders carrying more of the load.

Right.  That's how the Little Red Hen got a hold of all the other
animals' bread, greedy thing that she was.  She had broad shoulders.

I think you are mixing your metaphors. If you want to refer to
Orwell's "Animal Farm" you had better read it first.

This falls a
long way short of Marx -

Marx was kind of an idiot.

The same kind of idiot as Darwin, who laid out the obvious facts that
nobody had noticed before.

"The average price of wage labor is the minimum wage, i.e.,
 that quantum of the means of subsistence which is absolutely
 requisite to keep the laborer in bare existence as a laborer."
   --The Communist Manifesto

  See what I mean?

That pretty much describes the state of industrial workers in
Victorian England before the trade union movement got under way. Marx
was describing the way the world worked at the time when he wrote
that, based - in part - on the data that he got from Friedrich Engels,
who not only supported Marx financially, but also provided a lot of
the social statistics on which Marx based his work.

http://en.wikipedia.org/wiki/Friedrich_Engels

Marx's economic writings were much more evidence-based than those of
his contemporaries. If Marx is a kind of idiot, it is the kind of
idiot that we should see more often.

Your comment demonstrates that you don't understand why industrial
workes are no longer paid a bare subsistence wage, and the
contribution that Marx made to the process that changed their
condition.

  Of course Marx himself was a n'er-do-well who never earned his keep,
a pseudo-academic parasite sponging off patron Engels.  Engels in turn
coasted off the family business.  Marx made his living guilt-tripping
Engels with econobabble, a fine tradition carried on by Marxists
today.

There was nothing pseudo-academic about Marx. He revolutionised
academic economics, in part by exploiting statistical data about the
actual economies of the time, quite a bit of which was collected by
Engels.

  "To each according to need" really means "From you to me."  "Dear
Fred, I need that grocery money, and I deserve it, luv Karl, xoxoxoxo
P.S. Stop exploiting me! KM"

Perhaps. Marx didn't have an appealing personality. But he was doing
important - ground-breaking - work, and Engels saw its value and
provided the financial and intellectual support that allowed Marx to
get on with it.

That you don't see its value reflects your - negligible - intellectual
status as a right-wing nitwit.

  Marx's moronic precepts ruined scores of countries, and killed tens
of millions, maybe hundreds.

The Bolshevik version of Marxism, with its emphasis on the "leading
role of the party" has damaged a lot of countries, and killed a lot of
people. The problem isn't with Marxism, but the concentration of power
into the hands of an unrepresentative and irresponsible elite - the
Communist party in Stalin's Russian, Mao's China, and Pol Pot's
Cambodia killed a lot of people, but the Nazi Party in Hitler's
Germany, the Fascist parties in Mussolini's Italy and Franco's Spain
weren't far behind, despite their violently anti-Marxist ideologies.

 "Hard-won, self-acquired, self-earned property! Do you mean
  the property of petty artisan and of the small peasant, a form
  of property that preceded the bourgeois form? There is no
  need to abolish that; the development of industry has to a
  great extent already destroyed it, and is still destroying
  it daily."  --The Communist Manifesto

But, dim-witted Marx had it exactly bass-ackwards--industry was the
very salvation for the proletariat, pulling them up out of poverty.

Only after the trade union movement forced industrial employers to pay
their workers at above subsistence levels.
All a union can do is increase its members' wages at the expense of
other, poorer citizens. It's a less-then-zero-sum game. The thing that
makes everybody better off is productivity, and unions are generally
opposed to that. Ford doubled his workers wages before they were
unionized for two reasons: it was good for his business, and the
technology that he invented increased productivity enough that he
could afford it.

Productivity is the only real source of wealth, and technology is the
main source of productivity. Unions went for the money *after*
technology created the money.

The most productive enterprises these days are non-union. Unions have
mostly killed off the classic union industries.

John
 
On Fri, 14 May 2010 08:50:11 +0100, Martin Brown
<|||newspam|||@nezumi.demon.co.uk> wrote:

On 14/05/2010 05:12, krw@att.bizzzzzzzzzzzz wrote:
On Thu, 13 May 2010 21:03:14 -0700 (PDT), dagmargoodboat@yahoo.com wrote:

On May 13, 10:21 pm, "k...@att.bizzzzzzzzzzzz"
k...@att.bizzzzzzzzzzzz> wrote:
On Thu, 13 May 2010 19:08:20 -0700, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:

VATs tend to be sales taxes, in reality.

VAT is applied all up and down the production chain. So the only stage
that can be selectively taxes is the last one, at point of sale. I
prefer a true 100% visible point of sale sales tax. VAT is designed to
hide the actual taxation level, at considerable cost of complexity.

That's the theory but in practice, AIUI, VATs are only collected at the end of
the pipe.

No. They're charged and credited throughout the chain. Your thing
gets taxed, then rebated and the next guy pays, then gets his rebate,
etc.

So it's only collected at the end.

Maximum work for everyone. Maximum intrusion. Horrible.

A lot of work, sure, but money only changes hands at the end of the pipe.

No. You have it wrong. Every stage in the pipeline *pays* VAT inclusive
prices to their suppliers and totals up their input tax and then charges
their customers including VAT and totals up their output tax. Then
every month if large or three months if a small company you send a VAT
cheque to HMRC which is the difference of those two numbers.

A modern computer system doesn't find this too difficult. Unless that is
some half baked government changes the VAT rate from 17.5% to 15% in the
run up to Christmas as they did last year. That was a disaster for shops
as shelf prices are all marked inclusive of VAT. UK VAT is expected to
go to 20% shortly to deal with the deficit. It will make mental
arithmetic a lot easier - I never learnt my 17.5x table.

Exceptions exist for cross boarder trades in the EEC which allow not
charging VAT if the goods are for export to another country in the EEC.
This leads to a complex form of cross border trade called carousel fraud
which typically involves small high value objects like memory chips,
mobile phones and latterly carbon credits.

http://news.bbc.co.uk/1/hi/business/5204422.stm

...and IIRC, the Canuckistani VAT is paid by the buyer; a sales tax.

A pure sales tax paid only by the non-business end user would be a lot
simpler. Allowing businesses not to have to fight with badly paid VAT
advisers. I have had some amusing run-ins with them on reclaiming VAT
for a charity making disabled access improvements.
There's nothing wrong or difficult about having businesses pay sales
tax. We in California pay sales tax on anything we consume, like
equipment and furniture and supplies, and pay no tax on parts or
subassemblies that will go into sellable products. But it probably
makes sense to exempt productive equipment, since that would encourage
long-term productivity and job creation.

If there's an opamp in stock and I pull it out to make a breadboard or
a test fixture, I should in theory note the event and pay sales tax on
it. And if I buy a bunch of parts for engineering, taxed, but some
wind up in a shipped product, we should get a refund on the taxes.

VAT sounds like a mess to me. Accountants and attorneys and
bureaucrats are all useless, expensive overheads on society.

John
 
John Larkin wrote:
On Fri, 14 May 2010 08:50:11 +0100, Martin Brown
|||newspam|||@nezumi.demon.co.uk> wrote:

On 14/05/2010 05:12, krw@att.bizzzzzzzzzzzz wrote:
On Thu, 13 May 2010 21:03:14 -0700 (PDT), dagmargoodboat@yahoo.com wrote:

On May 13, 10:21 pm, "k...@att.bizzzzzzzzzzzz"
k...@att.bizzzzzzzzzzzz> wrote:
On Thu, 13 May 2010 19:08:20 -0700, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
VATs tend to be sales taxes, in reality.
VAT is applied all up and down the production chain. So the only stage
that can be selectively taxes is the last one, at point of sale. I
prefer a true 100% visible point of sale sales tax. VAT is designed to
hide the actual taxation level, at considerable cost of complexity.
That's the theory but in practice, AIUI, VATs are only collected at the end of
the pipe.
No. They're charged and credited throughout the chain. Your thing
gets taxed, then rebated and the next guy pays, then gets his rebate,
etc.
So it's only collected at the end.

Maximum work for everyone. Maximum intrusion. Horrible.
A lot of work, sure, but money only changes hands at the end of the pipe.
No. You have it wrong. Every stage in the pipeline *pays* VAT inclusive
prices to their suppliers and totals up their input tax and then charges
their customers including VAT and totals up their output tax. Then
every month if large or three months if a small company you send a VAT
cheque to HMRC which is the difference of those two numbers.

A modern computer system doesn't find this too difficult. Unless that is
some half baked government changes the VAT rate from 17.5% to 15% in the
run up to Christmas as they did last year. That was a disaster for shops
as shelf prices are all marked inclusive of VAT. UK VAT is expected to
go to 20% shortly to deal with the deficit. It will make mental
arithmetic a lot easier - I never learnt my 17.5x table.

Exceptions exist for cross boarder trades in the EEC which allow not
charging VAT if the goods are for export to another country in the EEC.
This leads to a complex form of cross border trade called carousel fraud
which typically involves small high value objects like memory chips,
mobile phones and latterly carbon credits.

http://news.bbc.co.uk/1/hi/business/5204422.stm

...and IIRC, the Canuckistani VAT is paid by the buyer; a sales tax.
A pure sales tax paid only by the non-business end user would be a lot
simpler. Allowing businesses not to have to fight with badly paid VAT
advisers. I have had some amusing run-ins with them on reclaiming VAT
for a charity making disabled access improvements.

There's nothing wrong or difficult about having businesses pay sales
tax. We in California pay sales tax on anything we consume, like
equipment and furniture and supplies, and pay no tax on parts or
subassemblies that will go into sellable products. But it probably
makes sense to exempt productive equipment, since that would encourage
long-term productivity and job creation.

If there's an opamp in stock and I pull it out to make a breadboard or
a test fixture, I should in theory note the event and pay sales tax on
it. And if I buy a bunch of parts for engineering, taxed, but some
wind up in a shipped product, we should get a refund on the taxes.

VAT sounds like a mess to me. Accountants and attorneys and
bureaucrats are all useless, expensive overheads on society.
Yup. And now they are talking about taxing services. Meaning what I cost
my clients would then go up by x percent, or the cost of doing business
in California would go up by x percent. Which will increase the exodus
because the guy 50 miles east of here in Nevada doesn't have that cost.
I sure hope that the 2/3rds rule will hold to avert such damage. Every
business or person leaving the state will cause the net tax from that to
drop to zero.

--
Regards, Joerg

http://www.analogconsultants.com/

"gmail" domain blocked because of excessive spam.
Use another domain or send PM.
 
On Fri, 14 May 2010 08:18:40 -0700 (PDT), dagmargoodboat@yahoo.com
wrote:

On May 14, 9:51 am, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 22:16:49 -0700 (PDT), dagmargoodb...@yahoo.com
wrote:



On May 13, 5:02 pm, Bill Sloman <bill.slo...@ieee.org> wrote:
On May 13, 8:20 pm, dagmargoodb...@yahoo.com wrote:

The argument for progressive taxation is usually put in terms of those
with the broadest shoulders carrying more of the load.

Right.  That's how the Little Red Hen got a hold of all the other
animals' bread, greedy thing that she was.  She had broad shoulders.

This falls a
long way short of Marx -

Marx was kind of an idiot.

"The average price of wage labor is the minimum wage, i.e.,
that quantum of the means of subsistence which is absolutely
requisite to keep the laborer in bare existence as a laborer."
  --The Communist Manifesto

 See what I mean?

Yeah, he wouldn't understand a female plumber making $150K.

What created our modern wealth was engineers applying science.

Yep. They made machines to relieve human toil, to improve the human
condition.
And "put people out of work."

Evil capitalists. Marx the Moocher should've stopped 'em.
Yup.

John
 
On Fri, 14 May 2010 07:56:31 -0700, Joerg <invalid@invalid.invalid>
wrote:

Bill Sloman wrote:
On May 14, 12:39 am, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:

[...]

That's the way sales tax works in California. If I buy uncooked
chicken at Safeway, there's no sales tax. If I buy cooked, hot,
ready-to-eat chicken, it's taxed. It's simple, because it's a visible,
automated-cash-register, point-of-sale tax. Restaurant food is taxed
whether you eat it there or not. I can't imagine how you could work a
thing like this all the way back up the VAT chain.

It would be easy to structure a national sales tax to exempt the
things poorer people actually need. There would be some cheating
around the edges, but there always will be some cheating. But things
like VAT carousel fraud couldn't happen.

(One shop near here sells " *WARM* " corned-beef sandwiches because
hot ones have a higher tax rate.)

I like the sales tax, as opposed to income tax, because it puts
business on a better basis against imports, so saves jobs. And because
it would be enormously simpler and cheaper to comply with. No
accountants, no tax returns, no exemptions, no deductions, no
quarterly estimates, no loopholes... almost.

Dream on. Why do you think that VAT was invented?

http://en.wikipedia.org/wiki/Value_added_tax


The usual. To squeeze ever more taxes out of people. Whether you call
them VAT, fees, surcharges, carbon credits or whatever, a tax is a tax
is a tax.
But some taxes require you to hire an army of bookkeepers and CPAs and
attorneys just to figure out how much taxes you should pay. Luckily,
all their fees are tax-deductable. This year, we will spend more on
the droids than we will pay in taxes.

John
 
On Fri, 14 May 2010 07:39:56 -0700, Joerg <invalid@invalid.invalid>
wrote:

John Larkin wrote:
On Thu, 13 May 2010 15:12:11 -0700 (PDT), Bill Sloman
bill.sloman@ieee.org> wrote:

On May 13, 6:32 pm, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
On Thu, 13 May 2010 07:32:26 -0700 (PDT), dagmargoodb...@yahoo.com
wrote:



On May 13, 4:39 am,Bill Sloman<bill.slo...@ieee.org> wrote:
On May 13, 1:51 am, dagmargoodb...@yahoo.com wrote:
On May 12, 5:48 pm, "krw wrote:
On Wed, 12 May 2010 09:34:59 -0700 (PDT), dagmargoodb...@yahoo.com wrote:
Maybe. A 10% VAT would raise $1.5T a year, enough to pay for Obama's
permanent spending bender on...whatever it was we got for all that
dough he spent--I can't remember.
*Maybe*. The deficit for just April was $83B. Note that April is also the
month when the government intake is *highest*, do to the April 15 tax filing
date. In 43 of the last 56 years April has been a net surplus month.
snip
A 10% VAT gives Obama $125B more/month to fritter away on nothing.
(Enough for break-even, not enough to pay off any debt.)
Of course that assumes people continue to buy stuff at the same rate,
which they won't. They won't work at the same rate either. Better
make it 18%, like Europe. And, naturally, that won't be enough
either. He'll spend more.
That said, Obama won't push a VAT--it doesn't redistribute wealth.
Deficit spending does.
Actually, VAT does redistribute wealth - away from the poor towards
the rich. The poor spend most of their income on buying stuff, which
attracts VAT.
True.
The rich divert a larger part of their income into investment, which
doesn't attract VAT.
Naturally. As a nation, we spend 10% of our time and creative energy
figuring out how to pay our taxes, and 5% (maybe more) planning the
course that minimizes them.
Technically speaking, this makes VAT is a
regressive tax.
In the US we have a proposal called "The Fair Tax," a simple 23%
national sales tax. It would replace all of our federal tax system
(personal and corporate income tax, Medicare, Social Security, etc),
and eliminate all the credits, deductions, receipts, bookkeeping and
time spent dodging & gaming the various income taxes. The latter
costs us hundreds of billions a year, not to mention human energy
wasted unproductively.
A simple "prebate" makes the Fair Tax progressive.
Just exempt basics, like sensible food, reasonable rent, generic
medicines, public transport, education, stuff like that. Use tax
policy to steer behavior.
They tried that in the UK. It rapidly got silly. Food was VAT-exempt,
but eating in a restaurant was not a necessity, so you had to pay VAT
on the bill - unless you bought a take-away meal.

That's the way sales tax works in California. If I buy uncooked
chicken at Safeway, there's no sales tax. If I buy cooked, hot,
ready-to-eat chicken, it's taxed. It's simple, because it's a visible,
automated-cash-register, point-of-sale tax. Restaurant food is taxed
whether you eat it there or not. I can't imagine how you could work a
thing like this all the way back up the VAT chain.


Actually, Countries in Europe have that in the VAT system. IIRC Germany
has several VAT levels, the one on uncooked food and groceries is around
half of the regular rate. Which is sky-high to begin with and, of
course, they also have an income tax.


It would be easy to structure a national sales tax to exempt the
things poorer people actually need. There would be some cheating
around the edges, but there always will be some cheating. But things
like VAT carousel fraud couldn't happen.

(One shop near here sells " *WARM* " corned-beef sandwiches because
hot ones have a higher tax rate.)

I like the sales tax, as opposed to income tax, because it puts
business on a better basis against imports, so saves jobs. And because
it would be enormously simpler and cheaper to comply with. No
accountants, no tax returns, no exemptions, no deductions, no
quarterly estimates, no loopholes... almost.

Tax consumption. Don't tax savings or investment or job creation. If a
person is rich but doesn't spend any money, nobody can reasonably be
jealous of his wealth.


A serious problem with that: It punishes frugal people who have saved
for their retirement and rewards those who squandered everything. The
money they saved _has_ already been taxed.
Simple fix: don't tax income.

John
 
On Fri, 14 May 2010 08:31:48 -0700, Joerg <invalid@invalid.invalid>
wrote:

John Larkin wrote:
On Fri, 14 May 2010 08:50:11 +0100, Martin Brown
|||newspam|||@nezumi.demon.co.uk> wrote:

On 14/05/2010 05:12, krw@att.bizzzzzzzzzzzz wrote:
On Thu, 13 May 2010 21:03:14 -0700 (PDT), dagmargoodboat@yahoo.com wrote:

On May 13, 10:21 pm, "k...@att.bizzzzzzzzzzzz"
k...@att.bizzzzzzzzzzzz> wrote:
On Thu, 13 May 2010 19:08:20 -0700, John Larkin
jjlar...@highNOTlandTHIStechnologyPART.com> wrote:
VATs tend to be sales taxes, in reality.
VAT is applied all up and down the production chain. So the only stage
that can be selectively taxes is the last one, at point of sale. I
prefer a true 100% visible point of sale sales tax. VAT is designed to
hide the actual taxation level, at considerable cost of complexity.
That's the theory but in practice, AIUI, VATs are only collected at the end of
the pipe.
No. They're charged and credited throughout the chain. Your thing
gets taxed, then rebated and the next guy pays, then gets his rebate,
etc.
So it's only collected at the end.

Maximum work for everyone. Maximum intrusion. Horrible.
A lot of work, sure, but money only changes hands at the end of the pipe.
No. You have it wrong. Every stage in the pipeline *pays* VAT inclusive
prices to their suppliers and totals up their input tax and then charges
their customers including VAT and totals up their output tax. Then
every month if large or three months if a small company you send a VAT
cheque to HMRC which is the difference of those two numbers.

A modern computer system doesn't find this too difficult. Unless that is
some half baked government changes the VAT rate from 17.5% to 15% in the
run up to Christmas as they did last year. That was a disaster for shops
as shelf prices are all marked inclusive of VAT. UK VAT is expected to
go to 20% shortly to deal with the deficit. It will make mental
arithmetic a lot easier - I never learnt my 17.5x table.

Exceptions exist for cross boarder trades in the EEC which allow not
charging VAT if the goods are for export to another country in the EEC.
This leads to a complex form of cross border trade called carousel fraud
which typically involves small high value objects like memory chips,
mobile phones and latterly carbon credits.

http://news.bbc.co.uk/1/hi/business/5204422.stm

...and IIRC, the Canuckistani VAT is paid by the buyer; a sales tax.
A pure sales tax paid only by the non-business end user would be a lot
simpler. Allowing businesses not to have to fight with badly paid VAT
advisers. I have had some amusing run-ins with them on reclaiming VAT
for a charity making disabled access improvements.

There's nothing wrong or difficult about having businesses pay sales
tax. We in California pay sales tax on anything we consume, like
equipment and furniture and supplies, and pay no tax on parts or
subassemblies that will go into sellable products. But it probably
makes sense to exempt productive equipment, since that would encourage
long-term productivity and job creation.

If there's an opamp in stock and I pull it out to make a breadboard or
a test fixture, I should in theory note the event and pay sales tax on
it. And if I buy a bunch of parts for engineering, taxed, but some
wind up in a shipped product, we should get a refund on the taxes.

VAT sounds like a mess to me. Accountants and attorneys and
bureaucrats are all useless, expensive overheads on society.


Yup. And now they are talking about taxing services. Meaning what I cost
my clients would then go up by x percent, or the cost of doing business
in California would go up by x percent. Which will increase the exodus
because the guy 50 miles east of here in Nevada doesn't have that cost.
I sure hope that the 2/3rds rule will hold to avert such damage. Every
business or person leaving the state will cause the net tax from that to
drop to zero.
Since we're increasingly a services economy, we should tax services
and simultaneously reduce tax rates on stuff.

John
 

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